TS TECH Report

1 TS tech Report2015TS tech Co., Ltd. TS tech Report 2015TS tech Report 2015 CONTENTSTS Philosophy/Conceptual Overview of TS tech s CSR/Corporate MessageContents 01TS tech s Value Creation Process/Editorial Policy 02A Message from the President 04TS tech s Business 08 Business Activity Highlights 10 Carrying on the TS tech Spirit 12 Special Feature 1: The Spirit of Challenge in TS tech s Trailblazers 13 Special Feature 2: Passing Down the Spirit of Monozukuri 15 Special Feature 3: Stakeholder Dialogue 18 How will automated driving alter intra-vehicle spaces? Young staff from the research group Za-Lab search for the starting point of monozukuri and the future of sittingTS tech s Business Model 22 Sales: Doing battle with proposal power that impresses customers and the ability to take action 23 Business Development: Its role is to become a command center for the expansion of sales beyond our existing customers 24 Research & Development: Attempting to create world-leading technology that can conquer global competition 25 Manufacturing.

2 The key phrase on the frontline of monozukuri is high quality 26 Our Relationship with Stakeholders 27 Our Relationship with Customers (Customer Companies and End Users) 28 Our Relationship with Shareholders and Investors 30 Our Relationship with Business Partners 32 Our Relationship with Employees 34 Our Relationship with Society and the Community 36 Our Relationship with the Environment 38 Corporate Governance and Compliance 42 Financial Report 44 Directors and Auditors 79 Global Network 80 Third-Party Opinion 8201TS tech Report 2015 ComplianceTSCGC orporate GovernanceInternal ControlCorporate RiskCustomersStakeholdersProviding Safe and Comfortable ProductsTS PhilosophyLocalCommunitiesAdministration SuppliersShareholdersEmployeesGeneralSoc ietySocietyEconomyTheEnvironmentA CompanyWelcomed with Joy Conceptual Overview of TS tech s CSRTS PhilosophyCSRC orporate

3 MessageTS PhilosophyBeliefs Due regard for human resources A company welcomed with joy Company PrincipleWe will always provide comfortable,high-quality products at a competitive pricefor customers all over the world,pursuing our dreamsthrough creating products andchallenging infinite Policies Create a bright working atmosphere, respecting harmony and communication among people. Work in a harmonious manner, making the most effective use of time and observing priorities. Challenge the creation of new value, using wisdom in an en-thusiastic manner. Strive constantly for the realizaton of individual the manufacture of its products, TS tech pursues safety, environmental sustainability, and comfort.

4 The pursuit of comfort in particular is multifac-eted and deep, and over the course of time, this pursuit is subject to an infinite process of evolution. When we approach our tasks as individual members of the TS tech Group, our actions are underpinned by the belief that comfort leads to satisfaction, which in turn brings joy to the end users of our products. Under the TS Philosophy, we are not bound to the present, but rather we create products that go beyond the present in order to bring joy to all our stakeholders. Our will and determination to take on the challenges of a world whose future shape we cannot yet see are expressed through the words Beyond Comfort. Corporate Philosophy (Mission)Shareholders and InvestorsBusiness ModelBusiness ModelInputCapital investment in business activitiesOutput from business activitiesTS tech s Business ActivitiesTS tech s Services(Output)

5 Value We O er StakeholdersCustomersEmployeesLocal CommunitiesThe and OpportunitiesStrategies and Resource AllocationResultsForecastsBusiness PartnersTaking positive actions for environmental protectionActive disclosure of information and a high degree of transparency in corporate managementAlways setting creative tasks from the customer s viewpoint and proceeding with the tasks from the customer s positionTaking pride in the company and work, keeping an open mind to everything and acting under the notion that all people are equalMaking a positive contribution to the local community as a member of the communityDealing with partners in a fair and sound mannerGovernanceGovernanceFinancial CapitalManufacturedCapitalIntellectual CapitalHuman CapitalNatural CapitalSocial Capital0203TS tech Report 2015TS tech Report 2015TS tech s Value Creation ProcessTS tech s business activities are based on the TS Philosophy and bring together a range of capital sources in a fusion of financial and non-financial.

6 In conducting these activities, we employ strategies and resource allocation in line with factors such as the external environ-ment, risks and opportunities. This enables us to develop comfortable, high-quality prod-ucts and create long-term value for our stakeholders as we look to continuous This Report 's FormatsBusiness activities pertaining to topics of importance to TS tech have been included in the printed Report in an easy-to-read format. In addition to this information, the online Report offers more detailed information and of the reportThe TS tech Report covers the entire TS tech Group, which conducts business in Japan and around the world. However, the scope of the Report may differ depending on business activities and CSR covered by the reportIn principle, this Report covers the period from April 1, 2014 to March 31, 2015 (fiscal 2015), but it may include coverage of activities before or after that ISO 26000 international guidelines for corporate social responsi-bility issued in November 2010, the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines Version , and the International Integrated Reporting Framework issued by the International Integrat-ed Reporting Council (IIRC)

7 In December 2013 were consulted in editing this 26000 Core Subjects SectionOrganizational Governance A Message from the President Our Relationship with Shareholders and Investors Corporate Governance and Compliance Human Rights Our Relationship with Employees Labour Practices Our Relationship with Employees The Environment Our Relationship with the Environment Fair Operating Practices A Message from the President Our Relationship with Business Partners Consumer Issues A Message from the President Our Relationship with Customers and End Users Community Involvement and Community Development Our Relationship with Society and the Communitiy ISO 26000 Related PagesFor comments and inquiries regarding this Report , please contact us at the address tech Co.

8 , Relations Section, Administration DepartmentTEL:+81-48-462-1136 FAX:+81-48-465-04033-7-27 Sakae-cho, Asaka-shi, Saitama 351-0012, Japan Date of publication: July 2015 Information Important to TS TECHI nformation Important to ReportPrinted ReportEditorial PolicyIn 2012 the TS tech Group issued the TS tech Report by integrating its annual reports and environmental reports. The TS tech Report was reorganized from the twin perspectives of financial information and non-financial information (corporate social re-sponsibility (CSR)). The Group is carrying out a variety of activities and initiatives in terms of the economy, the environment, and society in order to be a Company Welcomed with Joy. This Report is issued with the purpose of fulfilling the Group s accountability in these Report contains forward-looking statements from TS tech Co.

9 , Ltd. pertaining to plans, forecasts, strategies, and results. These forward-looking statements are based on currently available information, and actual results may vary significantly from the forward-looking statements contained in this Report due to a range of variable Medium-Term Management Plan (April 2014 to March 2017)Intensi ed e ortsFour priority measures 12thM e d i u m -Te r mManagement Plan2014 2017 Honda s global growth partnerBolster QCDDM competitivenessConstruct an infrastructure of people capable of competing worldwideSpread the TS Philosophy worldwideMeasures in the Americas to strengthen our earnings structure and activities to expand sales beyond our existing customersPracticing social contribution activities Establish our position as a global companyHungaryVolkswagenIndiaEicher PolarisUSAH arley-DavidsonBrazilVolkswagenMexicoMazd aExpand sales beyond our existing customersContribute to the community through measures such as tra c safety education and internships05TS tech Report 201504TS tech Report

10 2015A Message from the PresidentPresident and Representative DirectorThe evolution of manufacturing cultivates people and produces attractive productsDespite lower income and lower profits in the fiscal year ended March 2015, we maintained our operating income margin at roughly the same level as the previous fiscal year. In pursuit of further Group growth, we will continue to focus our efforts on expanding sales beyond existing customers, which are producing steady results, and strengthening our Results for the Fiscal Year Ended March 2015 Consolidated results for the fiscal year ended March 2015 included sales of 434,279 million yen (down from the previous year), an operating income of 35,286 million yen (down ), an ordinary income of 40,362 million yen (down ), and net income for the year of 22,008 million yen (down ).